The asset carries below market, assumable Fannie Mae debt with an extended interest-only period that bridges the gap to stabilization.

• Loan Balance: $10,700,000
• Rate: 5.34% Fixed
• Origination Date: 03/27/2023
• Maturity Date: 04/01/2033
• Interest-Only Term: 60 Months

Acquiring the asset at this basis positions the deal for substantial upside, with meaningful room for income growth and appreciation.

At this basis, the deal prices well below comparable properties that have transacted in this market within the last decade.

Texas Tech University and the Texas Tech Health Sciences Center serve as durable demand drivers in West Texas.

Texas Tech enrolled 45,812 students in Fall 2026, up 12% over the last two years.

The Lubbock healthcare network is the premier medical destination for West Texas and eastern New Mexico.

Recession-resilient jobs from both the university and the healthcare network support consistent occupancy through economic cycles.

The Lubbock MSA has gained more than 13,000 residents over the past five years (FRED).

The asset is currently 70% occupied relative to the North Lubbock submarket, which RealPage cites at 92.8%.

In-place rents are $107 below the comp set average of $858 per unit.

At just $0.85/SF, current rents leave new ownership a clear runway to close the gap to the $1.22/SF submarket average.